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SALT Report 3095 – The Ohio General Assembly introduced legislation that, if passed, would create a sales tax exemption for out-of-state nonprofit corporations that relocate jobs to the state.

For purposes of this exemption, a “qualifying nonprofit corporation” is defined as a nonprofit corporation that relocates at least fifty full-time employment positions from other states to Ohio. The employees must be relocated to Ohio within one year of the date in which the nonprofit corporation establishes a physical presence in the state.

The qualifying nonprofit corporation would need to apply to the tax Commissioner for a job relocation exemption certificate; and within thirty days the Commissioner will issue a relocation exemption certificate if the nonprofit corporation meets certain criteria. Once issued, the certificate will be valid for three years following the date of issuance. Any qualifying nonprofit corporation who is issued a job relocation exemption certificate and fails to maintain at least fifty full-time employment positions in Ohio will have its certificate revoked immediately.

In addition, the Commissioner may require the nonprofit corporation to periodically report the number of full-time employees relocated to the state, along with any other information the Commissioner deems necessary to support the certificate issuance.